Shipbuilder Austal has been awarded a US$53.5 million contract to procure materials for a new vessel for the US Navy.

Image credit: Austal website

Under the terms of the agreement, Austal will procure main propulsion engines, generators, water jets, main reduction gears and other long-lead time items for the 11th expeditionary fast transport ship for the US Navy.

Chief Executive Officer Andrew Bellamy said the contract award was “an important step on the critical path to a new shipbuilding contract.”

“It is timely that the U.S. Navy has directed Austal USA to move forward with the procurement of the long lead items for EPF 11,” Mr Bellamy said.

“We can now anticipate finalisation of a shipbuilding contract for EPF 11 in the coming months. Costs incurred will be reimbursed but no profit will be recognised prior to execution of the shipbuilding contract.”